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krisso1
New Member

If my W2s for 2019 add up to to 59,194 while the return shows 59,259 ($-65.00) My son's school cannot complete his review for student aid Where is that difference?

 
3 Replies
Critter-3
Level 15

If my W2s for 2019 add up to to 59,194 while the return shows 59,259 ($-65.00) My son's school cannot complete his review for student aid Where is that difference?

Look at the form 1040 line 1 ... is there anything in the margin like SCH 65?

rjs
Level 15
Level 15

If my W2s for 2019 add up to to 59,194 while the return shows 59,259 ($-65.00) My son's school cannot complete his review for student aid Where is that difference?

There are a number of different kinds of income that get added into the wages on line 1 of your Form 1040, but do not come from W-2 box 1. Many, but not all, of these types of added wage income are indicated by an abbreviation and amount shown to the left of the total wages on line 1. Do you have an abbreviation to the left of the amount on line 1? The most common of these are the following.

 

  • SCH - Taxable scholarship income
  • HSH - Wages earned as a household employee but not reported on a W-2
  • DCB - Taxable dependent care benefits from W-2 box 10


Some other types of income that might be added into line 1, without an abbreviation, are the following.

 

  • Tips that you did not report to your employer.
  • Allocated tips from W-2 box 8.
  • Disability payments from a pension plan from Form 1099-R with distribution code 3 in box 7, if you are below the minimum retirement age for the plan.
  • A corrective distribution or return of excess contributions from a retirement plan, from Form 1099-R with distribution code 8 in box 7.

 

If you have a PDF (or printed copy) of your 2019 tax return with all forms and worksheets, not just the forms for filing, look at the Wages, Salaries, & Tips Worksheet. It will show you everything that's included in line 1, and where it comes from, including all of the possibilities mentioned above.

 

rjs
Level 15
Level 15

If my W2s for 2019 add up to to 59,194 while the return shows 59,259 ($-65.00) My son's school cannot complete his review for student aid Where is that difference?

I just want to add a couple of comments. These kinds of problems come up all the time, and it's very frustrating.


Is the school's financial aid office really so rigid that they can't just overlook a $65 difference on a $59,000 item? That's a difference of 0.1%. How much of a difference would $65 of income make in your son's financial aid? If you can't easily figure out what the $65 is, maybe you should try to talk to someone higher up in the financial aid office.


If the $65 turns out to be taxable scholarship income (SCH 65 on line 1), you would think that the people at the school would know about that. After all, a lot of college students have scholarships. But we get a lot of questions from people whose college financial aid offices tell them that their tax return is wrong because of scholarship income being added to the wages. There's a surprising amount of ignorance about tax returns among the people in college financial aid offices who review tax returns all the time.

 

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